TASTE OF TONGUE

STRATEGY REPORT
SEPTEMBER 2015
UJJWALA DARVEMULA

Overview
Opportunity
Company Profile
Existing store performance
Market size
Recommended Franchisee Model
Sample reports for store operations
Internal cash controls
Potential Partnerships
Recommendations & Roll out

Strategies

Opportunity
Franchising Model: FOFO
Ideal Franchisee Profile: Full-time

passionate business owner

Investment Required: 9 Lakhs with
loan facility
ROI: 100% in 1year
Store Format: 400 Sq ft
Preferred Location: High
population areas such as close to
the proximity to IT parks, Colleges,
and dense residential areas
Terms 5 years + 5 years
(renewable)

Company profile (1/2)

Name of the Company

SOUTHERN SPICES AND BEVERAGES PVT LTD

Entity

PRIVATE LTD

Trademark Status

Registered

Brand Name

Taste of Tongue

Years of Establishment

2014

Top Management

SHIVAKUMAR HM - CMD

Industry and Segment

F & B retail

Registered Office

59/3, 1st main, Maheshwari Nagar, Mahadevapura, Bangalore 560048

Website

WWW.SSBGROUP.CO.IN

Product Mix

Different flavors of Tea and coffee (hot/cold) beverages

15 types of Sandwiches
Other items : Paratha, Omelettes, Pastas, Soups, Vada Pav , etc

Number of Outlets

Total Three ( in Bangalore)

USP

A perfect cafe experience of quality and hygiene food at

affordable price

Company Profile (2/2)

Affordable
Delicious & comprehensive beverage
menu
Live food preparations

Vision

Mission

Reaching out all the place where people wants quality food in
affordable cost

verticality in each area and focused presence with maximum benefits

for investors

Existing Store Performance

% Total Sales

Store format:
Operated since:2014
Annual Revenue: 33.6 Lakhs (2015)
Human resources: 6

Tea;Sandwitch
10%
/Bread; 30%

8 types of cold coffee

Cold Coffee; 50%

Pastas; 10%

8 types of Hot coffee

8 type of organic teas
15 types of sandwiches
10 type of Noodles
5 types of Pasta
4 types of vada pav,
Ice creams
35 type of milkshake blushes
6 types of Omelets
35 types of Soda
6 types of soups

80% of the footfall is driven for the love

for coffee and Sandwich related food
items
Affordability of food products, and
availability in the neighborhood are key
sales success

Snapshot of a store
Store Format:
Location:

QSR - Market Size

Organized Restaurant Segment is about 14% in 2013 and is pegged to grow 20% by 2017
Organized Segment is expected to reach Rs.22,000 Cr. by 2017, driven by:
Rising disposable income
Nuclear family structure
Increasing working population
Rapid urbanization and consumerism
Increased private equity interest
ORGANIZED FOOD SERVICES SECTOR - % break

Organized Industry is about 14% in 2013 to become 20% by 2017

Organized Restaurant Industry, Cr.

22,000

10,500

Hotels & lodgings; 9% Others; 3%

Pubs, clubs & bars; 15%
Restaurant; 40%

Cafes; 16%
Takeaways; 17%

2013

2017

Recommended Franchise Format

Minimum Area: 400 Sq. Ft
FRANCHISEE
Franchise format
Franchise Fee (in )

PARAMETERS
FOFO
Rs. 3.5 Lakhs

Royalty to Franchise (Units Franchise)

Location
Term of Franchise Agreement
Set Up Cost ( )

5%
Exclusive Stores standalone cafeteria near colleges, IT
parks and high end residential area
5 Years + 5 Yrs (renewable)
Rs. 5.5 Lakhs (excluding franchisee fee)

Rent

Franchisee Responsibility

Operational Expenses

Franchisee Responsibility

Security deposit (interest free

refundable)

Rs. 50,000

Marketing Contribution (of the total

revenue)

Local: 2%
Central: 1%

Production Unit and Training Support

Franchisor Responsibility

Note: Detailed financial model is will be shown separately in excel sheet

Operations organization chart

Taste of Tongue
Management Team

FINANCE

Audit (1)
MIS (1)

FRANCHISE
FRANCHISE DEVELOPMENT
DEVELOPMENT
TEAM
TEAM

Franchise support
team (1)
Site selection team (1)
Legal Team
(1) outsourced

CENTER
OPERATIONS

Brand/ Local Center

Marketing (1)
Supply chain team (1)

PROJECT

Training (1)
Center
Operations (1)
IT (1) outsourced

MARKETING

B2C marketing (1)

B2B marketing (1)

Accounts (1)

All the people cannot be employed at once, initially need to have Franchise Manager
who will look into the franchisee operations once the franchisee grows then the
number of employees will grow)
The rest of the teams might already be in place, however a Franchise Development
team should be kept in place with a franchise manager and a team for Franchise
Support

Franchise Support

SSB will provide 100% details of all recipes

Will give 1 month on site training to manager and employees
Supplying all major raw materials on MRP rates
Providing uniforms to all employees
Standardized design of restaurants and furniture etc
Selecting Equipments and kitchen items, vessels etc
Providing billing solutions
Changing and updating MENU every quarter
Identifying and helping for new recipes
Providing training on inventory management and waste
management to owner
Inspecting on daily basis and taking feedback from customers
for implementations
Quality monitoring and implementation
Providing necessary trained staff to restaurants
Taking care of all employee activities
Deputing permanent manager to restaurant
Taking care of all activities including billing, purchasing and
inventory management
Providing daily sales reports and purchase reports and
inventory details to owner

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Operational Challenges & Support

Attrition rates &

Employee
Management
Typical reporting
documents
Few Samples
Internal cash
procedures
Off season or rainy
day strategies

Strategies to reduce attrition rate

Train and hire people from rural India
on the cafe culture environment
Increased the number of training days
for new employees

Offers long-term opportunity to

their
customer service associates who
could
progress to become store managers
in
4-5 years with the company
Train and hire people from rural India
on the cafe culture environment
Started a training module

Generic
Salaries should be
competitive
Regular performance
reviews and offer raises
quarterly
Employee loyalty
programs - For example,
Employee of the month
Cross train employees
Have a backup for each
position especially
manager sand chefs
Encourage communication
Reward staff who stay
longer
Set clear expectations
Provide opportunities for
improvement

Restaurant Operations Checklists

Customer

Service Checklist

Purchasing Checklist

Receiving Checklist

Storage Checklist

Preparation Checklist

Cleaning Checklist (kitchen & storage)

Manager's Opening Checklist

Manager's Shift Change Checklist

Manager's Closing Checklist

Server work Checklist

Catering Delivery Checklist

Server Training Checklist

New Hire Checklist

New Employee Orientation Checklist

Employee Pre-Termination Checklist

Employee Termination Checklist

Restaurant Internal Controls Checklist

Restaurant Accounting Checklist

Restaurant Leasing Checklist

Restaurant Startup Checklist

Closing Your Restaurant Checklist

Typical Restaurant Reports

Summary sales report
Sales by product and hour
Sales by payment type
On-account sales report
Monthly sales report
Yearly sales report
Hourly sales report
Loyalty credit report
Activate gift card report
Redeemed gift card report
Pickup equipment request report
Sever tips report
Product usage By weight
Active cash drawer report
Cash drawer close report
Summary sales by cash drawer

report

Item sales by cash drawer

Cash drawer payout report
Pre-post sales report
Re-print posting report
Security events report
Food cost report
Food waste report
Sales margin report
Profit ranking report
Menu items report
Daily sales and Labor report
Server efficiency report
Product activity report
Product aging report
Average stock usage report
Restaurant usage report
Weekly product usage report

Scheduling & Rostering

Petty Cash Report - Sample

Cash handling procedures

Internal cash controls

Cash Limit
Controls
Program registers
to signal the
manager when
server or cash
drawers need a
cash drop
Require a
manager to
override for
recording register
transactions such
as voids and
discounts

Determine a
best starting
amount for each
shift
Select an
amount based
on the
transactions
Easy to count
amount

Schedule time
for cash
deposits same
Cash counting
time everyday
to be done in front
Proper handshake
of the
mechanism
manager/supervis
between the cashier
and the manager/or or
the person
Make sure there
depositing the cash are always two
Depending on
people when ever
number of
cash is being
transactions,
handled.
multiple cash
deposit visits can
be planed for
example end of
lunch, or dinner

Once cash is
removed from the
register has to be
deposited or
placed in a safe
place where an
un-authorized
person has no
access

Cash handling Checks & Balances

Checks & Balances

Monitor
standard
Video
variances for
surveillance of cash
Clear
Point of sale
assignment of cash registers overages/short
register with
tied to the POS ages, credit
connection to cash drawers
and back of
to cashiers
card
a back of
house
with
settlements,
house
reporting
documentation
deletions, over
reporting
system.
of
the
rings and
system.
manager and
Extremely
voids.
This is an
employee
effective at
Data from
absolute must. count.
deterring and
this report
catching theft.
can identify
trends to
increase
restaurant
profit

Establish a
tolerable dollar
amount of
cash shortage
or overage.
Amount
depends on
number of
transactions
and sales per
shift

Calculators
and
unauthorized
credit cards
skimming
devices near
the cash
registers must
be prohibited
and stated in
policy

Additional procedures followed

Establish

written policies, procedures, and expectations in handling transactions For example - Before and after shift count verification, single drawer accountability, manager
authorizations for voids, refunds, over rings, and closing the cash drawer after every
transaction.

Communicate

Expectations Communicate cash management and security related

expectations via written memo, employee handbook, and as part of everyday operations.

Signed

cashier policies Have every cashier sign cash handling expectations.

Retain in their individual personnel files.
Making Change Teach cashiers the habit of counting back change to the customer.

Cash

drops Other than the regular cash drop procedures

Managers should remove excess cash and large bills from the cash register and place in the
safe

Train Train cashiers on how to handle all transactions, including handling suspected
counterfeit, and the common scams involving credit/gift cards and quick change.
.

Ideas to improve sales during rainy days

Off peak
times

Potential/Strategic tie-ups
Ola food service delivery started in March
2015 (cab service)
Locations - Delhi, Mumbai, Hyderabad,
Bangalore
Promises to deliver in 20 minutes
Uber food service delivery (cab service)
Promises to deliver in10 -15 minutes
EBO or Kiosks in Food courts/IT Parks
Shopping Malls - Food Courts
Store or kiosk in areas where the target customer resides
Tourist/Travel locations
High traffic places such as Railway stations/Bus stations/Airports
Local Small parties catering

Rollout Strategies
Ideal Locations :
Sufficiently large
population such as
colleges, IT parks, high end
residential areas
Presence of competition
Preference to high
consumption areas
PHASE 1 - Bangalore + KA
PHASE 2 Tier 1 cities - Vizag,
Hyderabad, Chennai, etc
PHASE 3 Tier 2&3 Cities

Step wise process for franchisee acquisition

Information

Marketing
Franchise India can assist
in establishing
connections with business
buyers through various
marketing activities
across B2B media and
also in select mass media
vehicles such as Mainline - Print
Franchise & retail
magazines
Trade Shows
Online
Direct mailing
BTL / discovery days

Evaluation

Lead Generation
Basic Information
provided to all
applicants.
Expression of
Interest generated.
Franchisee profile
matched & details
validated.
Weekly progress
sheet submitted to
Taste of
Tongue
management team

Negotiation

Lead
Management

Recruitment

FRANMATCH
DAYS to be
organized with all
qualified prospects.

Letter of interest
signed.

Backed by Site
approval and
reference check.

Final conversion
and application
goes to operations
for processing.

Credit verification/
Due diligence of the
applicant.

Agreement Process.

Next Steps

Expression of
Interest

Franchise Ready

Detail Application/
information collection

Signing the
Agreement

Franchise Evaluation

Franchise
Approval

City & Site

evaluation

THANK YOU